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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (7189)	7/5/2014 8:08:54 AM
From: Goose94	Respond to of 203362

PPY-T new 52 week high, $14.36

To: Goose94 who wrote (7189)	7/7/2014 8:35:22 PM
From: Goose94	Read Replies (1) \| Respond to of 203362

Painted Pony Petroleum (PPY-T) July 7, '14 has entered into a definitive purchase and sale agreement to sell all of the company's exploration and production assets in Saskatchewan. The assets and transaction include: Fully financed cash purchase price of $100-million, before customary closing adjustments, with an effective date of June 1, 2014, and an expected closing date on or before July 30, 2014; Field estimated production volumes of 980 barrels of oil equivalent per day in the second quarter of 2014 (96 per cent oil and natural gas liquids); Proved plus probable (P+P) reserves of 5.3 million barrels of oil equivalent as determined by Sproule Associates Ltd., effective Dec. 31, 2013; Approximately 34,600 net acres of undeveloped land at June 30, 2014; $102,000 per barrel of oil equivalent per day, based on second quarter 2014 field estimated production volumes. Closing of the transaction is subject to the receipt of all necessary regulatory approvals. Following the close of the transaction, Painted Pony's syndicated credit facilities are expected to be adjusted to $150-million from their current level of $175-million. Upon closing of the transaction, Painted Pony anticipates that the syndicated credit facilities will be undrawn, allowing for further enhancement of the company's 2015 capital expenditure program, which contemplates drilling over 40 net Montney wells, approximately double the planned drilling in 2014. Strategic disposition Painted Pony's continued production growth and expanded development of its Montney project in northeast British Columbia led to the decision to pursue the sale of its interests in Saskatchewan and focus 100 per cent of the company's resources and operations on its Montney project. The timing of the sale of the company's Saskatchewan properties has been chosen to capture the current window in strengthening global oil markets, combined with an active and robust environment for oil-weighted transactions in Western Canada. As a pure-play Montney natural gas and natural gas liquids producer going forward, Painted Pony will be able to redeploy the proceeds from the transaction toward its high-return Montney initiatives and further the company's growth profile. In commenting on this disposition, Patrick Ward, president and chief executive officer, said: "Our Saskatchewan assets have provided Painted Pony with a solid foundation for the growth and development of the company since its inception. Through the monetization of these assets, we are confident that the reallocation of capital to our Montney resource play in northeast British Columbia will result in an accelerated pace of production and reserves growth." The sale of these assets represents approximately 2 per cent of the company's P+P reserves at Dec. 31, 2013. Cormark Securities Inc. and FirstEnergy Capital Corp. acted as exclusive financial advisers to Painted Pony in respect of the transaction. Production update Painted Pony's total field estimated production in the second quarter of 2014 was approximately 14,900 barrels of oil equivalent per day, weighted 86 per cent toward natural gas (including the 980 barrels of oil equivalent per day of production from the assets). These strong results are ahead of the company's expectations and have been largely achieved through improved optimization, drilling and completion methods used in its Montney project, as well as the full commissioning of the company's natural gas processing facility at Townsend. As previously announced, Painted Pony's 2014 average corporate production was expected to be between 13,000 barrels of oil equivalent per day and 13,500 barrels of oil equivalent per day, weighted 86 per cent toward natural gas. After giving effect to the transaction, considering the performance of recent Montney well completions, and before giving effect to any expansion of the company's previously announced 2014 planned capital spending plans, Painted Pony is pleased to reaffirm its 2014 average production estimate of 13,000 barrels of oil equivalent per day to 13,500 barrels of oil equivalent per day, weighted 89 per cent toward natural gas. The company is currently reviewing its Montney-focused capital spending plans for the remainder of 2014 and into 2015, with a view to redeploying the proceeds from the transaction into additional Montney drilling activity and related infrastructure expenditures.